The state-run Social Security System plans to increase its investment in local equities, specifically eyeing a strategic position in power companies.
In an interview, SSS president Emil de Quiros said the pension fund could still afford to increase its equity exposure by around 5 percent of P290 billion worth of investment funds.
“We have a limit of 30 percent. Now, we’re running at about 25 percent,” De Quiros said.
Based on the amount of funds it has, the SSS may place about P14.5 billion into the local stock market.
When asked what sector the fund would like to invest in, De Quiros said the SSS would be keen on buying power stocks.
The Social Security System had existing shares in some power companies, but these were not enough to get a board seat.
In scouting for power stocks to invest in, De Quiros said the SSS would follow strict criteria, such as a three-year profitability track record.
Asked about the pension fund’s program to invest in high-growth small-cap stocks, De Quiros said the fund had frozen this program even before he assumed the post of chief executive officer.
He also said that the SSS would look for opportunities to invest in infrastructure projects under the government’s public-private partnership (PPP) program even outside of its P50-billion contribution to a fund pool involving government financial institutions.
Outside of the proposed PPP fund, he said there could be opportunities to invest directly in such infrastructure projects or in companies pursuing them.